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PM Vishwakarma Scheme to be Included in PIDF Scheme

  • 09 Oct 2023

On 6th October, 2023, Reserve Bank Governor announced the inclusion of the PM Vishwakarma Scheme under the Payments Infrastructure Development Fund (PIDF) Scheme, along with a two-year extension of the PIDF scheme's tenure.

Key Points

  • Extension of PIDF Scheme: Governor disclosed the decision to extend the PIDF Scheme for an additional two years, now effective until December 31, 2025.
  • Purpose of PIDF Scheme: The PIDF Scheme, operational since January 2021, aims to incentivize the deployment of payment acceptance infrastructure.
  • This includes physical Point of Sale (PoS) devices and Quick Response (QR) codes, primarily in tier-3 to tier-6 centers, northeastern states, and the Union Territories of Jammu & Kashmir and Ladakh.
  • Original Tenure of PIDF Scheme: Initially, the PIDF scheme was designed with a fixed tenure of three years, ending in December 2023.
  • Expansion of Beneficiaries: The RBI Governor announced the inclusion of beneficiaries of the PM Vishwakarma Scheme in all centers under the PIDF Scheme.
  • This expansion aims to promote digital transactions at the grassroots level.
  • Encouraging Emerging Payment Modes: Based on industry feedback, the deployment of emerging payment acceptance methods, such as soundbox devices and Aadhaar-enabled biometric devices, will be encouraged within the PIDF Scheme.
  • This is expected to accelerate the deployment of payment acceptance infrastructure in targeted regions.
  • Comprehensive PM Vishwakarma Scheme: PM Vishwakarma, launched by Prime Minister offers subsidies of up to 8% on loans provided to artisans.
  • The scheme provides collateral-free loans of up to Rs. 3 lakh to artisans at a low-interest rate of 5%. It covers artisans across 18 fields and includes provisions for skill training, digital techniques, brand promotion, market linkages, digital payments, and social security.
  • Loan Disbursement: Initially, beneficiaries receive a Rs. 1 lakh loan, with eligibility for an additional Rs. 2 lakh after 18 months of repayment.
  • Holistic Approach: The scheme not only offers financial support but also encompasses advanced skill training, access to modern digital techniques, green technologies, brand promotion, market connections, digital payments, and social security.